State seeks continuation of $55.1 million for new public health laboratory; construction on schedule

Bismarck — Dirk Wilkie, interim commissioner of the North Dakota Department of Health and Human Services and executive director of public health, told the House Appropriations Subcommittee, Human Services/Human Resources that the state’s new public health laboratory is on schedule and on budget and asked the legislature to continue a $55,100,000 appropriation to complete the project.

Wilkie said construction began in spring 2024 after a guaranteed maximum price contract and that crews have worked through the winter. “The project’s going well. It is on budget. It is on time,” Wilkie said. He told the committee the construction schedule shows a completion date of June 26, 2026, with a planned move-in by the end of December 2026.

Why it matters: the new laboratory is intended to expand the state’s testing capabilities — including toxicology, chemistry and hematology — and to improve readiness for biological threats. Wilkie said the existing facility, built in 1974 with a 2004 addition and temporary trailers added during the COVID-19 pandemic, is beyond its useful life.

Funding history and current request: the department received an initial $15 million in American Rescue Plan Act (ARPA) funds in November 2021 for planning and development, and the 2023 legislative session approved an additional $55.1 million for construction. Wilkie told the committee the department has spent about $17 million on the project so far and will request authority to carry forward the remaining $55,100,000 into the next biennium to finish the laboratory.

Project oversight and payments: Wilkie said a laboratory building steering committee was established after the 2023 session with representation from HHS, the Department of Environmental Quality, the Office of Management and Budget, the governor’s office and three legislators (Rep. Ben Koppelman, Sen. Lee and Rep. Dobrevich). The department asked the committee be continued through project completion. Wilkie said contractor payments are made as work is completed, generally about once every two months.

Transparency and milestones: Wilkie reviewed recent milestones including the guaranteed maximum price contract, the April 16, 2024, groundbreaking and an October 24, 2024, beam-signing ceremony. He said the department maintains a public project website and a site camera showing a time-lapse of construction.

Budget context: Wilkie reviewed public health budget lines tied to the laboratory project and lab supplies, noting a large increase in operating authority largely attributable to federal lab-supplies funding and a multi-million-dollar increase in IT services tied to ongoing statewide IT contracts. Wilkie said the department will request the legislature continue the steering committee and carry forward the remaining appropriation authority to complete the building.

Committee follow-up: Wilkie asked the subcommittee to include two new sections in the upcoming bill: (1) continue the laboratory steering committee into the next biennium, and (2) continue the $55,100,000 appropriation to complete the State Lab project. No formal vote occurred during the hearing; Wilkie presented the request as part of the department’s budget testimony.